Beasley Reports Preliminary Q4 Financials

RADIO ONLINE | Thursday, January 14, 2021 | 7:24am CT

Beasley Broadcast Group, Inc. has announced preliminary unaudited financial results for the three months ended December 31, 2020. Beasley generated net revenue of approximately $67.4 million to $67.9 million for the three months ended December 31, 2020, compared to reported net revenue of $72.1 million for the three months ended December 31, 2019, representing a year-over-year decrease of between 5.8% and 6.5%. Beasley's estimated fourth quarter 2020 net revenue reflects a year-over-year decrease in commercial advertising revenue due to the ongoing impact of the COVID-19 pandemic, partially offset by growth in digital, esports and political revenue.

Fourth quarter 2020 Station Operating Income (SOI, a non-GAAP financial measure) increased by approximately 23.1% to 28.8% year-over-year to approximately $19.2 million to $20.1 million, compared to reported fourth quarter 2019 SOI of $15.6 million. Fourth quarter 2020 SOI less corporate expenses increased by approximately 47.9% to 58.8% year-over-year to approximately $15.0 million to $16.1 million, compared to fourth quarter 2019 SOI less corporate expenses of $10.1 million.

Fourth quarter 2020 EBITDA increased by approximately 25.0% to 33.8% year-over-year to approximately $17.0 million to $18.2 million, compared to reported fourth quarter 2019 EBITDA of $13.6 million.

The year-over-year increases in SOI, SOI less corporate expenses and EBITDA are primarily attributable to Beasley's initiatives to address the COVID-19 pandemic, including reducing operating expenses and corporate overhead and realigning our company-wide cost structure, the benefit of political advertising, as well as an expected gain on a land sale that occurred during the fourth quarter of 2020.

Commenting on the preliminary financial results, Caroline Beasley, Chief Executive Officer, said, "We expect to report top-line revenue improvement in the second half of the year, with sequential quarter-over-quarter growth in both the third and fourth quarters of 2020. Our preliminary fourth quarter performance also demonstrates the significant operating benefits from the actions we took earlier this year to address the pandemic, including reducing station operating expenses and negotiating discounts with landlords, service providers and partners. Although it is difficult to predict what the impact of COVID-19 will be in the coming months, we remain optimistic that the commercial advertising market will return to more normalized revenue levels as we move further into the year, following broad vaccine distribution."

The Company's financial results for the three months ended December 31, 2020 are not yet complete. Accordingly, the preliminary, unaudited results below are forward-looking statements based solely on information available to the Company as of the date of this release, and the Company undertakes no obligation to update this information, except as may be required by law. These preliminary, unaudited results are based on the most current information available to management following its initial review of operations for the quarter ended December 31, 2020 and remain subject to completion of Beasley's customary financial closing procedures, including external independent auditor review. In light of the foregoing, you are cautioned not to place undue reliance on these preliminary, unaudited results. Beasley expects to announce full fourth quarter and year end results and host a webcast conference call in February 2021.